H.N. Seth, Actg. C.J. - (1.) PETITIONERS No. 2 to 9 are residents of different villages situated within the local limits of Zila Parishad, Varanasi, and are engaged in the business of running Flour Mills. Petitioner No. 1 is an association of persons, like petitioners Nos. 2 to 9. Acting under Section 174(2)(k) of the U.P. District Board Act, 1922, District Board Varanasi enforced certain bye laws for regulating, within its local limits, running of flour mill with effect from 18 -6 -1952. According to these bye -laws no person could establish or maintain a flour mill within the local limits of District Board, Varanasi except in accordance with the terms of the licence for the purpose, obtained by him after paying Rs. 20/ - as licence fee. The bye laws also provided that any breach thereof would be punishable with fine which would extend upto Rs. 250/ - and if the breach be a continuing one with further fine of Rs. 10/ - for every day after conviction during which the offender is proved to have persisted in committing offence.
(2.) WITH a view to provide for the establishment of Kshetra Samitis and Zila Parishads in the State of U.P. which were intended to undertake certain Governmental functions at Kshetra and district level etc. the State of U.P. enacted the U.P. Kshetra Samiti and Zila Parishad Adhiniyam, 1961 (hereinafter referred to as the Act). Section 17 of the Act obliged the State Government to notify in the official Gazette the constitution of Zila Parishad for each district bearing the name of that district, and in due course the Kshetra samitis and Zila Parishad came to be constituted for the district of Varanasi. As a result of such constitution, the District Board Act, as laid down in Section 274 of the Act, stood repealed in relation to the district of Varanasi. However as laid down by Section 270 of the Act despite such repeal the bye laws for regulating flour mills, framed by the District Board, Varanasi continued to be effective and in force in the district of Varanasi. Accordingly, Zila Parishad Varanasi insisted that all persons installing flour mills within its local limits must takes out licences after paying a sum of Rs. 20/ - as licence fee. It also threatened to initiate criminal proceedings against all such persons who, according to it, were acting in contravention of the bye laws. The petitioners filed the present writ petition and questioned the right of the Zila Parishad to realise any licence fee from them under the bye laws for the purpose, framed by District Board, Varanasi in the year 1952. According to them, the District Board, Varanasi was not competent to frame the said bye laws in exercise of its powers under Section 174(2)(k) of the District Boards Act 1922. In the alternative they contend that neither the District Board, Varanasi nor the Zila Parishad, Varanasi had been rendering any service to persons running their flour mills within their local limits. In as much as there is no nexus between the amount of licence fee realised by the Zila Parishad and the services rendered by it to persons running the flour mills, imposition of licence fee is unconstitutional and is liable to be set aside.
(3.) SECTION 174(1) of the District Board Act enabled the District Boards to frame bye laws consistent with the Act and the rules framed thereunder for the purpose of promoting or maintaining health, safety, convenience of the inhabitants of the District Administration, Relevant portion of sub -Section 22 of Section 174 of the Act runs thus - - In particular, and without prejudice to the generality of the power conferred by Sub -Section (1), a board may, in the exercise of the said power, make any bye -laws described in the list below: - - (a).................... (k) regulating slaughter -houses and offensive, dangerous or obnoxious trades, callings, or practices and prescribing fees to defray the expenditure incurred by a board for this purpose...........;